5. Earnings Per Share

Basic earnings (loss) per share attributable to U.S. Cellular shareholders is computed by dividing Net income (loss) attributable to U.S. Cellular shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share attributable to U.S. Cellular shareholders is computed by dividing Net income (loss) attributable to U.S. Cellular shareholders by the weighted average number of common shares outstanding during the period adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon exercise of outstanding stock options and the vesting of restricted stock units

The amounts used in computing earnings (loss) per common share and the effects of potentially dilutive securities on the weighted average number of common shares were as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2015		2014		2015		2014
(Dollars and shares in thousands, except per share amounts)
Net income (loss) attributable to U.S. Cellular shareholders		$	19,352	$	(18,789)	$	179,416	$	693

Weighted average number of shares used in basic earnings (loss) per share			84,293		84,341		84,168		84,277
Effects of dilutive securities:
	Stock options		166		–		159		193
	Restricted stock units		433		–		522		571
Weighted average number of shares used in diluted earnings (loss) per share			84,892		84,341		84,849		85,041

Basic earnings (loss) per share attributable to U.S. Cellular shareholders		$	0.23	$	(0.22)	$	2.13	$	0.01

Diluted earnings (loss) per share attributable to U.S. Cellular shareholders		$	0.23	$	(0.22)	$	2.11	$	0.01

Certain Common Shares issuable upon the exercise of stock options or vesting of restricted stock units were not included in average diluted shares outstanding for the calculation of Diluted earnings (loss) per share attributable to U.S. Cellular shareholders because their effects were antidilutive. The number of such Common Shares excluded, if any, is shown in the table below.

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2015	2014	2015	2014
(Shares in thousands)
Stock options	3,539	3,559	2,953	1,820
Restricted stock units	85	1,191	205	141